9/19/2019 Need and Importance of Marketing Research

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Need and Importance of Marketing

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Need and Importance of Marketing Research!

The most important task of a marketer is to get the right product at the right place with
the right price to the right person. Besides, it was also necessary to go back and find
whether consumer is getting optimum satisfaction, so that consumer remains loyal.
These aspects made it imperative for the marketers to conduct marketing research.

The following points explain the need for and importance of marketing
research:

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1. Identifying problem and opportunities in the market:

It helps in identifying new market opportunities for existing and new products. It
provides information on market share, nature of competition, customer satisfaction
levels, sales performances and channel of distribution. This helps the firms is solving
problems.

2. Formulating market strategies:

Today, markets are no more local. They have become global. Manufactures find it
difficult to contact customers and control distribution channels. Competition is equally

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9/19/2019 Need and Importance of Marketing Research

severe. The consumer needs are difficult to predict. Market segmentation is a compli-
cated task in such wide markets. The marketing intelligence provided through
marketing research not only helps in framing but also in implementing the market
strategies.

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3. Determining consumer needs and wants:

Marketing has become customer-centric. However, large-scale production needs

intermediaries for mass distribution. Due to prevalence of multi channels of
distribution, there is an information gap. Marketing research helps in collecting
information on consumers from structured distribution research and helps in making
marketing customer oriented.

4. For effective communication mix:

In an era of micro- rather than mass-marketing, communication plays a vital role.

Marketing research uses promotional research to study media mix, advertising
effectiveness and integrated communication tools. Research on such aspects will help
in promoting effectively a company’s product in the market.

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5. Improving selling activities:

Marketing research is used to analyse and evaluate performances of a company within

a market. It also studies effectiveness of a sales force. It helps in identifying sales
territories. Such information helps the companies in identifying areas of shortcoming
in sales. It also examines alternative methods for distribution of goods.
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The most challenging task for any production manager is to keep optimum levels of
inventory. However, production is undertaken in anticipation of demand. Therefore,
scientific forecast of sales is required. Marketing research helps in sales forecasting by
using market share method, sales force estimate method and jury method. This can
also help in fixing sales quotas and marketing plans.

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7. To revitalize brands:

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9/19/2019 Need and Importance of Marketing Research

Marketing research is used to study and find out the existing brand position. It finds
out the recall value of brands. It explores the possibilities of brand extension or
prospects of changing existing brand names. The main purpose of marketing is to
create brand loyalty. Marketing research helps in developing techniques to popularize
and retain brand loyalty.

8. To facilitate smooth introduction of new products:

Marketing research helps in testing the new products in one or two markets on a small
scale. This helps in finding out consumer response to new product and develop a
suitable marketing mix. It reveals the problems of the customers regarding new
products. Thus, it controls the risk involved in introducing a new product.

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9. Determine export potentials:

The development in transport and communication has helped in globalization and

digitalization of world trade. This has helped in boosting the growth of international
markets. Marketing research helps in conducting market survey for export. It. collects
information on marketing environment prevailing in a country. By collecting data on
consumers from different countries, it indicates export potentials.

10. Managerial decision-making:

Marketing research plays a vital role in the decision-making processes by supplying

relevant, up-to-date and accurate data to the decision-makers. Managers need up-to-
date information to access customer needs and wants, market situation, technological
change and extent of competition.
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